Homebuyers in UK can not afford deposit for Mortgage

Recent research has revealed that the average UK homebuyer now needs nearly 26 months of income to cover the expense of a 20% mortgage deposit. The study conducted by Barrows and Forrester, a letting agent, indicates a growing disparity between house prices and salaries.

In London, even if one didn’t allocate any funds to necessities such as food and rent, saving for a deposit would take approximately 37.2 months. In the South East, with a monthly income of £2,400, it would require 32.3 months to amass a £78,300 deposit (equivalent to 20% of the property price).

Similarly, in the South West, buyers would need to set aside £2,100 per month for 31 months to gather a £64,200 deposit. In the east of England, earnings of £2,300 would need to be saved for 30.4 months to afford a deposit of £70,200.

James Forrester, the Managing Director of Barrows and Forrester, pointed out that the UK is grappling with a significant “affordability crisis.” He added, “Even with a competitive income, affording a deposit has become an arduous undertaking, unlike previous generations. Additionally, the surge in mortgage rates over the past year has made it even more challenging to secure the necessary salary for repayment, particularly in regions with elevated housing costs like London and the South East.”

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